April is Recognized as National Financial Literacy Month in U.S.
In 2003, the United States Congress put forward the idea of a financial literacy month. Since March 2004, when the U.S. Senate passed Resolution 316, April officially became National Financial Literacy Month.
To support the idea financial institutions and non-profit financial education institutions of America hold promotional events during this month and create educational materials aimed at improving financial literacy of the people and showing them ways to manage money more effectively and to reduce debts.
Thereby, for several years The Federal Reserve Bank of Chicago has been holding so-called Money Smart Week — a national campaign that offers thousands of free events across the country to lead people of all ages and financial positions to better personal financial management. Last year the campaign took place in 41 states and hosted more than 140,000 participants. This year Money Smart Week was opened on March 30 and will be held till April 6.
5 Principles to Manage Your Money
Federal Financial Literacy and Education Commission, which includes more than 20 Federal entities seeking to improve financial opportunities and gain access to more financial services for Americans, also provide materials to promote financial literacy and education using their website MyMoney.gov. They advise to follow 5 main principles in order to manage your money and improve
• Earn. Be sure to find out what exactly your salary is made of, what deductions and withholdings are taken monthly. This will help you keep your income in check.
• Save and invest. From a young age you should already think about the future and start saving money. Having some savings in stock, you will always be ready not only for planned expensive purchases or life events, but even for unplanned ones.
• Protect. It is incredibly important not to forget about your savings’ protection. Take care to insure your money and property, as well as to protect yourself from identity theft and fraud.
• Spend. Learn to manage your finances wisely by planning large purchases in advance and comparing prices.
• Borrow. When borrowing money from lenders, calculate your possibilities for monthly payments correctly with interest rates and fees taken into account. Remember that getting a loan or a credit card on favorable terms is largely determined by your credit history and score.
National Financial Literacy Month is a wonderful occasion to reflect on your finances indeed. After all, the issue is to be significant for each of us as financial illiteracy is known to be a serious problem in U.S. Many consumers get into debt for some expensive purchases without thinking whether they can afford to pay it later.